Planning for the transition of a closely-held business can be complicated. Whether it is in preparation for retirement or in case of an unexpected passing, it is vital to have a succession plan for your business. An experienced estate planning attorney could help you come up with that plan.
From sole proprietorships to LLCs, the lack of a succession plan could cost your loved one’s time and money. Handling succession without a plan could complicate your estate and make a difficult time even more challenging. Let a Junction City business succession lawyer assist you with making a plan that works for you and your family.
Business succession is an essential aspect of retirement planning. Closely-held, family-owned businesses require special attention and typically cannot be easily transferred or sold. A succession plan could ensure that these businesses survive an owner’s retirement and are handed down to the next generation. A Junction City attorney could play an important part in developing an appropriate business succession plan.
The benefit of creating a succession plan is that it allows the owner of a business to address the question of succession before it becomes urgent. There are steps that must be taken to ensure that successors have access to bank accounts and real estate holdings. This process could also help avoid disputes about who will take the reins of the business moving forward.
Without a clear plan in place, chaos could quickly overtake a business. From questions regarding asset ownership to the right to make important decisions for the business going forward, it is possible to address these issues with a succession plan.
Every succession plan starts with a successor. This individual could be a close family member or the person who is best suited to keep the business running after the owner steps away. After the successor is chosen, there is typically a training plan put in place for their benefit. This plan provides the successor with the tools they need to step into the operator’s shoes.
It is important for a succession plan to also include a timeline. This timeline should provide specific details on when the current owner will step down and put the company in the hands of the successor.
The owner should also take other steps necessary to prepare for retirement. This could involve the standard estate planning options like preparing a will or setting up living trusts. The final step requires the successor to fully take over the business. A knowledgeable Junction City attorney could provide guidance throughout every step of the business succession process.
Any closely-held company—large or small—could benefit from a sound succession plan. These plans could ensure that a family-owned business continues for future generations. Relying on the guidance of a Junction City business succession lawyer could reduce the risk of costly mistakes while creating a plan.
Some of the issues that an attorney could help with directly include tax consequences, asset transfers, and regulatory compliance issues. An attorney could even ensure that adequate training is provided from the owner to the successor.
If you are ready to secure your business’ future, a dedicated attorney is ready to help. Reach out today to schedule an initial consultation.
